General Provisions | Midpage40-18-1Definitions.40-18-1.1Operating Rules.40-18-2Levied; Persons and Subjects Taxable.40-18-2.1Income of Foreign Missionary Exempt.40-18-2.2Exemption of Certain Nonresident Income.40-18-3(Effective January 1, 2025) Income of Officers or Agents of the United States, Etc.40-18-4Interest or Other Income Received from Obligations of the United States or Its Possessions, Agencies or Instrumentalities.40-18-5Tax on Individuals.40-18-6Gain or Loss - Basis of Property; Adjusted Basis.40-18-6.1Gain or Loss - Special Rules for Capital Gains Invested in Opportunity Zones.40-18-7Gain or Loss - Determination of Amount.40-18-8Gain or Loss - Recognition.40-18-8.1Gain or Loss - Recognition of Gains Invested in Opportunity Zones.40-18-9Gain or Loss - Optional Method for Returning as Income Increases in Redemption Value of Securities Purchased at a Discount.40-18-11Inventory.40-18-13Computation of Income.40-18-14Adjusted Gross Income of Individuals. (Amended by Act 2026-551)40-18-14.1Deferred Compensation Plans.40-18-14.2Adjusted Gross Income.40-18-14.3Gross Income - Discount and Interest.40-18-15Deductions for Individuals Generally. (Amended by Act 2026-604)40-18-15.1Net Income Taxable Income Defined - Generally.40-18-15.2Net Operating Loss.40-18-15.3Deductions for Health Insurance Premiums.40-18-15.4Deductions for Certain Retrofitting or Upgrades to Homes - Residence in Alabama Insurance Underwriting Association Zone.40-18-15.5Deductions for Certain Retrofitting or Upgrades to Homes - Residence in Alabama.40-18-15.6Deductions for Contributions Made to Health Savings Accounts.40-18-15.7Optional Increased Standard Deduction for Qualified Persons.40-18-15.8Deductions for Contributions to Qualifying Alabama Achieving a Better Life Experience Savings Accounts.40-18-16Depreciation.40-18-17Items Not Deductible.40-18-19Exemptions - Generally. (Amended by Act 2026-603)40-18-19.1Exemptions for Severance, Unemployment Compensation, Etc.40-18-19.2Exemption of Certain Death Benefit Payments for Peace Officer or Fireman Killed in Line of Duty.40-18-19.3State Income Tax Credit for the Use of Personal Motor Vehicle to Respond to Fire, Emergency, or Rescue Calls.40-18-20Exemptions - Military Retirement Benefits.40-18-21Credits for Taxes Paid on Income from Sources Outside the State and for Job Development Fees.40-18-21.1Annual Report of Credits Claimed for Taxes Paid to Foreign Countries.40-18-22Taxpayers Engaged in Multistate Business - Allocation and Apportionment of Deductions and Exemptions.40-18-23Taxpayers Engaged in Multistate Business - Option of Certain Taxpayers to Report and Pay Tax on Basis of Percentage of Volume.40-18-24Taxation of Subchapter K Entity.40-18-24.2Taxation of Pass-Through Entities.40-18-24.3Taxation on Distributive Share of Interest, Dividends, Etc., of Nonresident Member of Qualified Investment Partnership.40-18-24.4Alabama Electing Pass-Through Entity Tax Act.40-18-24.5Refundable Credit for Certain Owners, Members, Partners, or Shareholders of Electing Pass-Through Entities.40-18-25Estates and Trusts.40-18-25.1Estates and Trusts - Exemptions.40-18-25.2Estates and Trusts - Deductions from Gross Income of Net Operating Loss.40-18-26Information from Source of Income.40-18-27Individual Taxpayer’s Returns; Liability of Innocent Spouse.40-18-28Returns of Subchapter K Entities and Single Member Limited Liability Companies.40-18-29Fiduciary Returns.40-18-30Return When Accounting Period Changes.40-18-31Corporate Income Tax - Generally.40-18-31.2Factor Presence Nexus Standard for Business Activity.40-18-32Corporate Income Tax - Exemptions.40-18-33Corporate Income Tax - Taxable Income.40-18-34Additions Required by Corporations.40-18-35Deductions Allowed to Corporations.40-18-35.1Carry Forward of Net Operating Losses.40-18-35.2Deductions from Federal Taxable for Amounts Included in Income Under 26 U.s.c. § 951A, Etc.40-18-35.3Deductions from Federal Taxable for Amounts Included in Income Under 26 U.s.c. § 118(B)(2).40-18-37Items Not Deductible by Corporations.40-18-39Corporate Returns.40-18-39.1Business Interest Expense Deduction Limitations.40-18-39.2Extension of Due Date for Taxpayers of Corporate Income Tax, Tax Years Beginning on or After January 1, 2021.40-18-40Tax to Be Reported on Forms; Department May Assess Additional Tax Penalty or Interest.40-18-41Amortization of Ad Valorem Tax.40-18-42Time and Methods of Payment of Tax.40-18-42.1Revised Due Dates for Payments of Income Tax or Financial Institution Excise Tax.40-18-44Installment Method.40-18-50Penalty for Failure to Make Return Within Time Specified.40-18-51Applicability of Lien Provisions; Disposition of Collections; Collection Prior to Delinquency.40-18-53Inspection of Returns by Federal or Foreign State Agents.40-18-54Supervision of Assessment and Collection.40-18-55Statement to Be Furnished by Taxpayer.40-18-56Furnishing Sworn Statement of Annual Return of Income to Department; Penalties for Failure to Comply; Limitations on Inspection of Taxpayer’s Records.40-18-57Rules to Be Promulgated by Department of Revenue.40-18-58Appropriation.40-18-59Additional Appropriations.40-18-60Covid-19 Recovery Capital Credit Protection Act of 2021.40-18-61Restaurant Revitalization Grant Monies.40-18-62Amortization of Research and Experimental Expenditures Under the Federal Tax Cuts and Jobs Act.